dagen: i am connell mcshane. dagen: i am dagen mcdowell. new york congressman on what will actually get done down in d.c. connell: more violence today in the middle east. this time in tel aviv. secretary of state clinton is heading to egypt. dagen: can't we all get along. i am not talking about middle east. i am talking about hostess and its bakers union. no, they cannot agree so the company is shutting down. connell: charlie gasparino will be on to talk about what may be one of the biggest insider trading cases all-time. dagen: top of the hour. stocks now and every 15 minutes. nicole petallides.

nicole: the profit numbers missed the analyst expectations. farm equipment maker actually reported weaker than expected numbers. some expenses that cut into their earnings. and a stronger dollar also played a factor. they know that was something of an issue. as far as 2013, where did they expect growth? the company expected south america to show the strongest demand in 2013. let's take a look at the dow jones industrial. up 21 points. so far, we still have a winning week on wall street. we will see if this is our winning week. back to you. connell: thank you very much. dagen: there is no way around it. if congress cannot get its act together on the fiscal cliff, taxes for the vast americans will go out.

90% of households in this country will pay higher taxes if the u.s. goes off that cliff. with low income families among the hardest hit. connell: charlie wrangle, congressman from new york, he is here in studio with us. >> we have to get a deal done. it would be irresponsible for congress to go forward. most people do not know that the break that they are getting is temporary. it expires december 31. do nothing and the rates automatically go up. what about the severe cuts that we will have in the budget. this is a nightmare that we created that never should have happened. now it is on the brink of happening. in my opinion, will it happen, no. we have the option to do

something justice and responsible. that is kicked the whole thing off to next year. believe me, the country is facing such a terrible crisis. dagen: even if they broker a short-term deal, it goes for six months, what about the hope of overall tax reform? isn't that better to get a short-term deal and then do something more sweeping and permanent? >> i do not even want to talk about a six month deal. we have business people that need to make plans. we have middle-class people who want to send their kids to college. we have two plans for tomorrow. for business people that is five or ten years from now. connell: broadening the base and lowering the rates. that is what they talk about. >> they know and i know and the president knows the money is not there. what is so magic about saying we have to increase the rates for

the top 2%. i do not know. the tea party caught in the room with these people put something in the water. it does not make sense that you say and agree that 98% of taxpayers are entitled to not have their taxes increased. the top 2% should keep a lower rate as well. they are willing to raise money by closing loopholes. the money is not there. dagen: what we talk about broadening the base, that means more people would pay something. we have almost half of americans that paid no federal income tax. no net. as a veteran of the korean war, that means almost half of this country does not pay a dime, a nickel, a penny for our military. are you comfortable with that? >> i am here to bring balance

and fairness. dagen: don't you think people should pay a little bit, at least, to fund our military? >> we have given incentives so that people would not go into poverty and they continue to work. want out of every five kids born in the united states of america is born into poverty. you cannot say that they do not pay taxes. they buy milk, they buy clothes. [talking over each other] dagen: i am talking about the people, even under the bush tax cuts who no longer pay no federal income tax. >> you are talking about funding the military. who do you think is fighting the war for exact. dagen: that is not my question.

>> there is a lot of sacrifice. dagen: you do see my question, though? >> i do see it. this is one more that has people placed in harms way. connell: on the issue of taxes, revenue is on the table. >> big deal. connell: all right. but they have said it. connell: let me get to the democrats. it takes two to tango here in terms of making a deal. [talking over each other] >> you are saying it takes two to tango, especially if one is not even talking mathematics. i would say, okay, we will put revenue on the table and you raise the money through revenue.

mathematically, it cannot be done. if we wanted to say just for the purpose of having them fulfill their commitment to nordstrom or these people that make these promises, we can do it. what is this reason that makes it obscene to talk about a fair small increase to the top 2%? connell: you would also vote for a deal call but have some cuts to entitlement. >> it is how you do things. you cannot just talk about cutting things. connell: so, it is a know, basically? >> no. it has to be negotiated. they do not want to give. the problem that republicans have is they made a commitment to a very small part of their

party. if they do not please them, they are out of business in the house of representatives. connell: we love having you on. >> have a great thanksgiving. connell: you to. dagen: as always, great conversation. connell: the latest development in the middle east. they ate. still no truce. sixteen people repootedly injured with a bus explosion in tel aviv today. hillary clinton has been traveling. heading down to egypt. meeting with the preeident there. they are trying to broker a truce between israel and hamas. dagen: dan, how does this progress? >> well, it probably ends with a cease-fire, eventually. i dow not that the bus bombing was carried out by hamas. i do not know if you'll get a

cease fire over the weekend. what they got was a lot of public support, but not much more than that. connell: you say it may end with a cease fire. say we get that. for the sake of our discussion. then what? how does that affect us and the rest of the process going forward? >> one of the difficulties is

the next thing you want is a truce. the israelis are saying are we talking about a truce or a timeout? , want israel to lift the blockade of the gaza strip. they cannot cut off the sure that that will happen. it will be very difficult to get a truce. dagen: how does it impact those tensions now? >> this is an excellent question. what the israelis have achieved is they have not rot international condemnation upon themselves. the interesting reason they did that is because they had this missile defense system set up. it knocked down about 90% of the rockets that hamas had sent him.

that is the issue of the iranian nuclear program. before the election, the big question was, will israel bomb the iranian nuclear plants. i think israel has allowed itself to still have that option available to them. connell: that option is available to them and they have the election coming up. >> in january. we are at a very interesting point now in the middle east. dagen: and credible insight, always. happy thanksgiving. connell: good start to the hour. a lot of important stuff going on around the world. then we have this hostess story. they could not reach a deal with the union. the company looking to move ahead with the shutdown. you are talking about 18,000

people out of work. dagen: blackberry dumped by the government this time. they say the blackberries keep failing. an unacceptable rate. what if they held congress to the same standard? connell: steve cohen, one of the big names. he is now at the center of an insider trading case. charlie gasparino has been doing some reporting on that. he will be here to give us the very latest. first, let's look at oil. ♪

connell: markets now. heading back to nicole petallides. we do it every 15 minutes. nicole: take a look at zales. they come out with a loss that is worse than expected. the stock is getting pummeled today after the numbers that are coming out. they did not meet the expectations. citigroup, interestingly enough, are talking about the fact that they are still bullish on the company. they say they have inventory on hand for sale. their sales trend growth looks good. citigroup is out there and being very bullish.

this stock is down 30%. back to you. dagen: thank you. save the twinkie. well, not quite. hostess and federal court right now moving forward with its plans to completely shut down. this will cost within 18,000 jobs after a mediation session failed to resolve any contract disputes. the u.s. bankruptcy judge during a hearing yesterday that the party off for a last ditch effort. hostess back in court this hour wanting to shut down and fell off its most popular brands. wonder bread, twinkies, you name it. the twinkie will live on, i predict. connell: yes, but those jobs are gone. there is this new poll out that

the president can make peace. most americans think they can cut a deal. dagen: if you are thinking of traveling, followed is a problem. jeff flock reports live from chicago's o'hare airport. first, take a look at world currencies and how they are holding up against the dollar today. ♪ want to try to crack it? yeah, that's the way to do it!

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>> and 22 minutes past the hour, i have your box is minute. a un agency claiming israeli literary dropped on gaza. many fearing it is a prelude to a ground invasion. attempts to broker a cease-fire further complicated by a terrorist attack on a bus in tel aviv this morning that wounded 22 people. secretary of state hillary clinton making her move to the middle east. clinton sitting down earlier with egyptian president. this following meetings with israeli prime minister and

palestinian president. the taliban claiming responsibility for an attack near afghanistan that left two afghan guards dead. fox news learning the bombers meant to target the base, but were spotted by security first. those are your headlines. back to connell. connell: we are just 40 days away from this so-called fiscal cliff. there is a new poll out showing that two thirds of americans are confident that president obama will make an effort to work with republicans in congress. we asked two governors on today. we had congressman rangel on earlier. we could not come up with a compromise in the five minutes that he was here. i suppose we will have some

better luck with the two of you. on the republican side, give me a reasonable proposal on taxes. >> well, the republicans have to knowledge that revenue has to be part of the package. however, much they could make a case, it should not be here, it should not be here, it should not be here, the reaction if i were president would be okay, where should it be? we all know there has to be revenue. you come up with an idea as where it should be. that means if they cannot do it, the responsibility for the fiscal cliff falls on them and they do not want it. connell: he already set the top 2%, 250,000 above. at least we start there and move on their or no? >> i would look at the details of it. to the degree that impacts small businesses that are filing

returns. i think you could finance back. that is probably the place to start. connell: okay. continue from there. what else would you like to see in the deal? >> i think there has to be flexibility on virtually everything. both sides. in many ways we have painted ourselves into such a tight corner that there are not many routes out of here. as the president and others have said, the solution has to be balanced. i also think that the president will reach out. you know, if you are dancing and having -- you need to want to lead and someone to follow. i think this is a tipping point. the question is whether or not we will see gridlock down the road or whether or not this is a new approach, i hope it gets done. connell: we will start with the 250,000 above in the revenue on the table. that is a big move for

republicans. that is their or it is being talked about. what about on the democratic side? what would you do for medicare? >> well, i think entitlements have to be a part of the consideration. the growth of entitlements is very substantial. while one size does not want any additional revenue, but they have to be willing to agree on revenue, the other side may not want any adjustments and entitlement. connell: you think they will agree to that? >> well, i think so. there are plenty of spending cuts available. there is belt-tightening that is available in a wide range of areas. connell: from your comments and others in the republican party, the party has changed here and a little bit and approach to all of this? >> if you compare the impact of

the tea party on the republican fortunes, the tea party cost the republicans control of the senate. clearly, if the tea party candidates had not been nominated in 2010 and again some of them in 2012, mitch mcconnell would be the majority leader. the leadership is saying a lot now, wait a minute, guys, we have a brand that is pretty much tattered and not looking very good. the tea party complained about gridlock and now, ironically, the tea party is responsible for gridlock. we will have to make some changes. grover norquist and others will feel the impact of that analysis. connell: we will see how that plays out. thank you to both of you, as always, for coming on. >> thank you. dagen: billionaire hedge fund manager steve: on the ropes. what does charlie gasparino know about it?

connell: and then we have holdups in holiday travel. there is jeff flock at the o'hare airport in chicago. jeff: a foggy day in chicago town. what is the impact? i will show you and tell you what we come back. standby. it is not a pretty bored. ♪ [ male announcer ] with over 50 delicious choices

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dagen: breaking news to bring you that a mideast cease-fire could be imminent. two well respected sources telling fox news that they expect israel to announce a cease-fire later tonight or tomorrow local time. they expect hamas to declare an independent cease-fire as they did in january 2009. it comes as hillary clinton shuttles across the middle east. connell: let's go to nicole petallides with stocks now as we do every 15 minutes. nicole: i am looking at denver-based chipolte. they seem to be extremely popular. here is a look at chipolte today. it is up 2%. this is on share buyback. they have a deal with morgan stanley. this is moving forward.

it is expected to be completed in the first quarter. as i go onto the website, they have snowman gift cards. chipolte mexican grill. if you want to get that to someone for the holidays, you can do that. back to you. dagen: thank you. will history repeat itself? it could be the weakest of all four for the markets. sam stovall is here. how week, potentially, historically? >> the first year is the weakest of all four. i use history as a guide. it is not the exclusive basis for the forecast. he usually get that out get that out of the way early in his new term. dagen: historically, how has the

s&p done in the first year? >> up only about 4.5%. the frequency is really no better than a coin toss. basically, you have to have very positive economic fundamental backdrops in order to maintain some support in that first year. dagen: given the weakness we have seen in the economy, it could mean that the market will be quite a bit worse next year. >> it could. historically, in an economic expansion that is more than halfway through the normal duration, you know, we end up seeing a decline in that first year. right now, we will be entering the 42nd month of this economic expansion. dagen: what is the technical saying about the strength in the market for? it has been incredibly weak heading up to the election and also after the election?

>> maybe we could break back above. really, we will probably not set new recovery highs until we head into 2013. once we get this fiscal cliff and maybe new tax or reform out of the way, people will hope congress will be changing its ways. dagen: let's keep hoping on that one. sam, thank you very much. sam stovall of s&p. connell: one of the biggest days for traveling at the airport. jeff flock is live at o'hare in chicago with more on all of this. jeff: the old perfect storm. a foggy day on a busy travel day. this woman is getting ready to do a broadcast on the fox news

channel. what is the problem today? >> overall, throughout the country, we are seeing no big travel issues. here at o'hare in particular, we have seen a few cancellations and some delays in the morning. through the afternoon, we are only expecting it to get better. jeff: i want to show you guys the boards. larry, call -- follow me very quickly. take a look at the arrival board. this is the arrival board at o'hare. anything in yellow is either delayed or canceled. it is a bit of a mess at the moment. the only disasters are here: at least when it comes to air travel. o'hare, the busiest airport of this thanksgiving travel weekend. busier than anywhere else.

a lot of people come through here on the holiday. we will be here all day. dagen: stop sneaking up on women in the airport. [ laughter ] jeff: only size to women, though. only size to. dagen: i am a size zero. jeff: you need to put some meat on her bones. dagen: jeff, we love you. now, steve cohen is in the crosshairs. charlie gasparino is loaded and he will bring you that story. take a look at your treasuries today. yields, up a little bit. ♪

>> i have your fox business brief. jobless claims were sharply lower last week. still distorted from hurricane sandy. as expected 410,000 americans filed for first-time benefits. both new york and new jersey had huge increases in claims. according to the monthly sales report, sales have been rising every week since the storm. september sales are also expected to be strong. mortgage rates hit record lows again. according to freddie mac, the average rate on a 30 year mortgage rate is now 3.31%. that is the latest from the fox business network. giving you the power to prosper. ♪ [ male announcer ] the markets keep moving.

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connell: we are back here. the hedge fund and the founder steve cohen have cooperated. it has been getting a lot of attention here. the largest ever taken on by the securities and exchange commission. charlie gasparino has been all over it. charlie: steve cohen has not been charged. the guy that was charged yesterday was one of his former portfolio managers. his name is michael. here is the rub. he made about 250-$270 million money leaked illegally and insider tips. he shared those tips with, guess who, steve cohen, his boss. that is where the investigation

gets interesting. i want to bring in my guest, an attorney. i do not think, elizabeth, that there is enough here. i don't think there is chargeable. in this lawsuit. it was a doctor, right, that knew something about an alzheimer's drug. he traded on it. he shared that with steve cohen good there is nothing in these charging documents that said steve cohen knew it was illegal information. >> i think i disagree with the way you are reading the indictment. charles: they did not indict steve cohen, though. >> they might as well have. it is made clear by the fbi investigator in order to make the $276 million in trade, it was steve cohen you have to pull the trigger.

mark, who received the information had to convincecohen . how do you suppose he did it? i imagine by telling steve cohen it was good information. charlie: here is one thing we should point out how the capital works. i am not trying to be a defense attorney here for steve going. i am merely trying to play devil's advocate. they both run money. in running their money, you know, including this guy, they go out and make bets in a shared their best bets with steve cohen. now, just because he obtained that information illegally and suppose he does not tell steve cohen that he obtained it illegally. isn't that possible? >> no. according to the indictment

there was a 20 minute phone call between the two after the doctor gave him the nonpublic information. what were they discussing for 24 minutes. twenty-four minutes. charlie: i am just saying to you, listen, it is a little fishy when the government charges this guy, obviously, big trade, but does not charge steve cohen. they must not have the case. >> i read it differently. there is still time to charge him. i think the government put out this compelling indictment. a fabulous read. that is in order to, i think, shake some sense into cohen. make him nervous.

charlie: cohen is already nervous. they have been investigating this guy before you and i were born. no, not really. since i was working at the "wall street journal," since something like 2000. for the last 12 years steve cohen has been under investigation. my guess is they do not have the case. i will tell you, the way i know sav capital, it is one of those places, steve cohen does not want to know necessarily where you are getting the information. he just wants to know if it is a good trade. be a defense attorney here or be a prosecutor. if he stopped short, telling him it was inside information, i have a great source, if he stops short about telling him exactly how he got it, can you make a case against steve cohen?

>> absolutely. absolutely. he knew or absolutely should have known. he sold close to $800 million worth of stock -based on and then steve cohen pulled the trigger on buying short position. based on a 20 minute phone call on sunday. charlie: you still have the thread in that needle. we do not have the information that steve cohen knew it was illegal information. >> knew or should have known. connell: good stuff, charlie. we will obviously be back on this for a number of times throughout the day. charlie: you need to find that smoking gun. connell: let's go back to nicole. it is 15 minutes till the top of the hour. nicole: we want to bring you up to date on some hot stocks to

watch. including to tout components that are leading today. industrials which are up. hewlett-packard bouncing up after yesterday. we see hewlett-packard as a top performer on the dow jones industrials as well as cisco. bank of america. we are also seeing facebook up 5% today. mozilla will now corporate facebook. best buy a day after we talked about same sort sales being week, today we are seeing analyst across the board downgrading. best buy is down. scholastic known for the "hunger games" trilogy. dagen: thank you. u.s. drivers on track to use the least amount of gasoline in over a decade. why are we spending then a

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dagen: this country is allowed to spend, listen to this, a record $490 billion on gasoline this year, but we also will be using less gas than we have in a decade. tom kloza, please explain.

he is on the phone with us. how is that possible? >> it is possible because we have had consistently high prices this year. we never saw the apocalyptic numbers of five and six dollars. we will probably average about $0.10 above what we did last year, which was a record. we will use about 490 billion or so. just shy of argentina's gross product. dagen: that is reassuring. >> some of it is attributable to high unemployment. some of it is attributed to changing behavior. some kids will be driving everywhere with jobs. they are not. it used to be that older people would retire to florida. dagen: that is healthy.

for the next year and a year after that and the year after that, is this the new reality for america that we will be spending more and more money every year on gasoline? >> you know, i do not think so. i really don't. we may spend more. we may spend a little bit more. we will spend a lot less versus the rest of the world. we are seeing crude oil numbers today that are in the 50s and 60s for the geographically tracked crude in north america. we will be the beneficiary of that. yes, we may pay similar to what we paid last year or the year before, but we have a huge energy advantage over the rest of the world now. dagen: that is good to hear. in the short run, being shortsighted between now and the end of the year, will prices continue to fall nationwide wow we are at $3.42 nationwide average right now.

>> i think it all depends on what happens in the middle east. if the middle east have rockets glaring back and forth, i think we may say at these numbers. if not, i think we will trend just a little bit lower. we probably are not likely to break below that low number average of last year. the bad news, and i am telling you this deserves merit at some point, watch out for heating oil prices this winter. we have very low supplies. dagen: great to talk to you, as always. i hope you have a very happy thanksgiving. hopefully, you do not have to travel anywhere. >> i will not be out there on black friday. thank you. dagen: tom, thank you again. tom kloza. connell: i want to get to this blackberry story now. research in motion is being dumped by the federal government. they are ditching the blackberry to favor the iphone. the blackberries just kept

failing at and unacceptable rates. the blackberry simply was not getting the job done. look at research and motion today. the stock is up by 1.25%. dagen: if you will be sucking down all the turkey and trimmings tomorrow, get ready to pack on some way. they are expected to consume anywhere from three to 5000 calories. if you think a quick trip to the gym will melt away the extra calories, not by. for a 150-pound person who consumes 2800 calories which is probably less then you will be tomorrow, it will take you 29 miles of running. [ laughter ] connell: that is a long way. dagen: how insightful of you.

connell: we bring you the breaking news here on markets now. eating a lot will make you fat. i am lad we are able to fit that in. dagen: what time is dinner forks back. connell: why don't you come to my house around 3:00 o'clock or 4:00 o'clock. dagen: and is not. connell: well, i will not be there. happy thanksgiving, everybody. dagen: if anybody is going to hunt you down, it is me. connell: some people have to work on thanksgiving and they are not happy about it. protesters will be at your local walmart. dagen: cheryl casone is ahead. ♪  twins. i didn't see them coming.

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cheryl: former walmart employees ppan to protest outside several walmarts across the country and using black friday to get the message across. we will tell you who is the kind of protest against wal-mart. looks like unions of gone too far with the parent companies of twinkies and wonder bread. a judge could liquidate hostess and do away with 18,000 jobs. by plane, train and automobile we look at the state of transportation during the thanksgiving rush. we begin by getting breaking news, palestinian sources are confirming what fox news, a cease-fire has reportedly been agreed to by hamas and israel. secretary of state clinton has been shuttling around the least with peace talks and headed to

jerusalem. we expect a news conference coming out of egypt. egypt has been a crucial player in all of this. the president there has been backing hamas. many egyptians back hamas but hillary clinton has been discussing with egyptian officials the fact the law of our aid to the imf and they have to strike a deal and strike an accord. we are waiting on confirmation. there are reports of a cease-fire. we heard this yesterday and we will bring that breaking news when we get it. now we go to the stock market as we do every 15 minutes, nicole petallides, 4 of the stock exchange every 15 minutes. a lot of traders are leaving town. what do you think? nicole: and look at a full day run rate. looks ok but two hundred million shares here at the lunchtime hour and volume has been somewhat light and we have a 200 point gain monday and looking at winning weeks of our on wall

street is what. drug stocks to the upside. major market averages are higher. banking index is falling back. traders are taught to as far as the trend of this market four week 0 of selling and despite a gain on monday they still think if you were buying around these levels you would end up with a winning portfolio. mark neumann was saying that. take a look at salesforce.com. the software provider has quarterly numbers and maintain earnings outlook and talk about cloud computing. the number one winner in the s&p 500, salesforce.com is leading the way and up 8%. cheryl: thank you very much. nicole petallides. walmart shares today, the same rates they have been trading. stock is down $0.04 at $68.90.

unions are trying to put a big pain in the retail giant at side. by staging protests. jane rosen joining us inside the beltway. this is a washington story because wal-mart filed a complaint with federal authorities and set a big clock in motion. give us the outlay as soon as you can. >> we begin by noting walmart is the nation's largest retail and employs more 1 million employees in the u.s. and the sales last fiscal year of $500 billion. the company filed a complaint with the national labor relations board in little rock, ark. alleging unfair labor practices on the part of the united food and commercial workers union claiming that the union who organize picketing outside 1300 walmart stores on the heavy shopping day of black friday this friday is effectively an attempt to unionize wal-mart workers outside of the rules that govern

unionization. >> the union may say they're not engage in an organizing effort but the truth is they would love to organize wal-mart and have been wanting to do that for a long time and walmart is looking at companies like hostess and general motors that have been virtually bankrupted by unsustainable labor costs thanks to unions. >> a spokesman for the union rejected this unfair labor practice charge telling fox news, quote, unfair labor is working full time and living in poverty and seeing your health care premiums skyrocket year after year. unfair labor is being denied the hours needed to support your family and the union at the one not stand down into wal-mart -- walmart changes the way it treats its employees. cheryl: we remind our viewers walmart is not a unionized company. the battle has been going on for years. at the same time the national labor relations board we expect a decision yesterday and they punted and that surprised me.

they were going to decide on it before black friday so walmart would have the answer whether it violated federal labor law and they punted. why did they do that? >> i'm not sure you won't see a decision in time to affect black friday. the national labor relations board is comprised of four members, democratic appointees, one republican with both of president obama's selections the recent appointees. investigators from the multiple field offices have been out deposing witnesses and trying to arrive at a ruling in time to either permit or halt the picketing plans for black friday. spokesman for the nlrb told fox news the agency expects to issue its ruling in the walmart case on thanksgiving day. on black friday last year nearly ninety million people, one third of the american population went shopping online or at a store so as you have been saying the stocks -- stakes are high.

cheryl: a crucial timing not just for the company but for consumers as well. great story. appreciate it. on a day when we see initial jobless claims remaining they are above 100,000. is there a hope the extent of holiday hours and retailers across the country will help the nation's job market? joining me is the executive vice president of challenger gray and christmas. -pi want to pick up on somethina report out of washington was talking about. several unions have taken companies down as in the case of hostess or with regard to walmart picking black friday to protest. from a jobs perspective does this concern you that we are going to see some issues in the labour market because of these union protests? >> anything that adds complexity or lack of direction to the economy and decisions we are making will make it more difficult to us to create jobs

and what will happen is companies will move from being proactive in anticipating the future to be reactive and only doing what they have to do until things become more clear. cheryl: you in your survey stock to many corporate ceos who say we are concerned about health care. they talk about the cost of having full time employees. in 2013, we will see a shift and part-time workers across the country? >> corporate america, the document is hundred of thousands of words. hard to decipher. no one has a handle on what is going to happen to health care rather than big picture. will force companies to do, prescriptive things they can do. cheryl: when we talk about the

timing of big retailers and protests aside, wal-mart and target and retailers opening earlier. do you think this will have a net positive affect? >> for the retailers to open early absolutely. anything you can do to send a positive message this time of year, up helps us move forward against all the confusion. cheryl: rick cobb, a favorite of mine, happy thanksgiving. looks like a strike by the bakers' union has cost 18,000 jobs. twinkiemaker hostess is in federal court moving forward with plans to shut down the company after mediation with the bankers union failed. the bankruptcy judge adjourned the hearing yesterday and sent the parties out to negotiate terms that might keep the floundering company afloat. no deal was reached. hostess wants to shut down and some of its popular brands.

the company has settled with millions of dollars in debt right now. it may not be a make or break holiday shopping season for j.c. penney, but we have an analyst ahead who says this retailer needs to prove itself and they need to do it right now. as we go to break take a look at oil, at this time, $86.73. cut flat but the contracts have a lot of activity because of tension in the middle east. i've been a superintendent for 30 some years at many different park service units across the united states. the only time i've ever had a break is when i was on maternity leave. i have retired from doing this one thing that i loved.

now, i'm goingo be able to have the time to explore something different. it's like another chapter.

cheryl::00 continuing to take down for congress and president obama to make a deal to avoid going over the fiscal cliff. 40 days. our next guest says everyone should be preparing. no matter what changes are coming in 2013, well manager and president and founder joins me now. let's talk about this. i am sure many of your clients are coming in to you right now and saying we have got to do something, what we going to do? what do you tell them?

>> absolutely. everybody wants to know what do we do and what is going to happen? if they don't come to an agreement we will all feel this. right there. [talking over each other] >> it is just a kleenex. the reality is when my clients come and i want to share with them a couple things we can control in our lives the coming weekend. taxes and that we are not going to control so let's look at the positives and control what we can control. if we have positives in the portfolio and gains i tell my clients to harvest those gains. if you doing many rebalance, some of my clients want to go on trips to italy, i am going to harvest that $10,000 and put it aside and a 15% on it instead of 20% and don't forget there's that 3.8% obamacare health care tax on front of it so that is a

strategy my clients can do to take control of their taxes. cheryl: is affecting the majority of their clients. as you mentioned dividends and capital gains, some investment advisers are walking around saying hank tight, don't make any moves, congress will figured this out. what do you say to the other side who want to ride the cliff if you will? >> regards to writing the cliff, we can't really do anything right now until they decide what they are going to do, you can only control what you can control. one thing i am telling my clients to do is we know taxes will increase next year because of the 3.8 andddividends so maybe expenses until next year, things you would take this year on business's prepaid expenses

or your personal -- charitable deductions or clothing to good will. maybe get your bigger bang for your buck as opposed to this year and finally one of the things i am telling my clients, i had a client coming and they received a gift from their parents of half a million dollars cash gifts because of the $5 million may go down to $1 million. if you are considering geting, reduce your overall state as well. that is something else you can do to reduce -- cheryl: so many ideas being floated around. thank you very much. >> happy thanksgiving. cheryl: joining us and noon eastern. we will give you a fiscal cliff survival kit. what you need to do right now to prepare for the fiscal cliff, a potential tax hikes and changes your pay check, what you do

about dividend paying stocks and a lot more. this will put survive let one stern. stocks every 15 minutes. what are you watching? nicole: just thinking about a state tax. if you die better the next year, let's talk about scatter, popular footwear. the financial group raising their ratings on the issuemaker. they talked earlier that the stock was ahead of the fundamentals and they are changing their tune and that is why you are seeing the stock up 12% so they upgraded the positive from neutral, talking about momentum continuing to increase across their product categories heading into 2013. this is good news and they are beginning to see the modest outperforming in the current quarter and a good outlook for 2013. and an up arrow over $2 to the upside. cheryl: thank you very much. see you soon. a terror attack in israel.

obama on a bus in tel of the. reports of the cease-fire may be imminent. first as we go to break with the world's currencies. the u.s. dollar.

cheryl: breaking news. as the muddling fox news to expect israel to announce a unilateral cease-fire late tonight or early tomorrow. this from fox's lehman from southern israel. >> almost sounds like deja vu all over again. we were standing on the same hole talking about the effect of the we were close to a cease-fire and there were reports that they cease-fire. these reports appear to be more concrete legitimate least it is not over until the last rocket fired as early as 10 minutes ago we saw a big explosion inside the gaza strip so we think hillary clinton, secretary of state in egypt right now and she and the egyptian president are expecting to have a news conference. whether that happens and the punt and of is that debate and clearly there are conflicting reports that there will likely be a ceasefire to end they 8 and

a very bloody day at that. the bombings started again and this is the raw intensity we saw with the suicide bombing that you see over year. all the glass knocked out and this is where passengers were. the iron dome has protected tel aviv from hamas missiles but did not protected from this and brings fear to the country's largest city. >> terror in the streets again. ten time the day. good to have this as well. >> celebrations of a bus bombing began almost immediately with candy handed out for kids and hamas gunmen firing into the air. is real's pounding of the gaza strip continued. the bombing of a soccer stadium indicated eight days in the

israeli air campaign and 1500 targets later there were wear out of the rockets, ammunition and other weapons available. militants continue using them to fire at southern israel sending multiple rockets to the defense system. direct hits in israel destroyed at least one house. still tonight we are hearing the sound of is really droned overhead although we haven't heard any warning sirens in this area of rockets coming out from the gaza strip. coming out thing they're very fluid. things fell apart last night and could still fall apart tonight but it is beginning to come together as a possible cease-fire deal. cheryl: everyone has been very cautious after what happened last night. thank you very much. cease-fire talks continuing and there are reports of progress in a week long conflict that next guest does not expect a true truce.

jeremiah o'keefe is the white house advisor to iraq and he is president of o'keeffe global advisor is. what do you make of the latest headlines. you heard a correspondence a multiple sources report we have a cease-fire in place but why is this not enough in your opinion? >> it is a temporary lull in the war that is being waged against the state of israel. we have got to look at the long-term picture in the region as the israelis do. they have iran coming online with a nuclear device sometime in the spring or summer or fall of next year and i have been in and out of the region for 25 years and the region is elated with the fact that president obama has been elected president again. they see this as a strategic opportunities -- cheryl: ac the president as weak on foreign policy? >> absolutely. we had today is a temporary lull in the battle because secretary

clinton was in the region. egyptian want to receive a. the palestinians don't want to irritate the united states too much. cheryl: they need a as well. let me go back to something. you use to the adviser of the white house. do you think the president, he has been silent. secretary of state clinton to inspect a phone at least. in the middle east is this a sign the center and him not to be more involved but a sign of weakness on the president's fault? >> a perfect example of what we had before the recent election of the president leading from behind. the region is going for incredible historical change and the united states need to be firmly engaged in every capital of the region shaping the events in the direction that things need to go. it is their own revolution but if not, if we don't do that very

save vacuum and hamas, hezbollah, al qaeda, this is where the president has faltered. if the former cia director was in cairo, the former cia director in lebanon, communications were occurring with hamas and egypt, we would not be seeing the attack on the level we have now. cheryl: they you think benjamin netanyahu if he made this move now in advance of continuing tensions from iran because of the weapons cache found in the gaza strip. it is believe the iranians are behind some of the shipping of those missiles as well as the lebanese. do you think benjamin netanyahu news this and the reason he is making this move is because iran will be an issue six months or nine months from now? >> you are hitting it right on the head. israel is in a difficult

position. no matter what they do there will be blood involved. it would be to the benefit to take on hamas. of hezbollah steps in take iman, when they address iran down the road regarding nuclear devices i guarantee you iran will push the buttons of hamas and hezbollah to rain thousands of missiles down on israel and you have to put in perspective the size of israel. israel is the size of did -- new jersey, connecticut. cheryl: breaking news with regard to this back story. i want to that everybody know you are looking at egyptian foreign minister just announced a cease-fire. this is breaking news, the foreign minister announced a cease-fire, live pictures coming out of cairo. secretary of state clinton, just to make some comments. i want to let you know we don't know what will be in english or

not in english. we are getting a question from the crowd right now at this moment. [inaudible question] cheryl: we can someone hear the question. they're going to address at this point what has been believed from southern israel that cease-fire has indeed been arranged between israel and hamas. this is the gaza strip, 25 miles of the gaza strip. 1 million people living there, incredible amounts of violence out of the gaza strip and also tel aviv, a city in israel. the president to the right of the screen is muslim brotherhood in egypt and what we have seen, more of a populist movement to

support hamas in egypt and that is one of the reasons the secretary clinton went there. this is the foreign minister, my apologies. . trying to listen in to see what the questioner is saying that it is very difficult. cheryl: i want to let you know the foreign minister of egypt, next to secretary of state clinton who came to cairo after she went to jerusalem to talk to benjamin and yahoo! has announced a cease-fire. the reason egypt needed to broker this deal is the proximity to gaza and the proximity to israel and several issues in this, food shipments to the tunnel, issues with regard to natural gas discoveries off the coast of israel. all of this is affecting it.

>> i want to thank president moore'sy for his leadership. [speaking in native tongue] sp change this is a critical moment for the region. egypt's new government is assuming the responsibility and leadership that has long made this country a cornerstone of regional stability. united states welcomes the agreement -- the rocket attacks.

>> the people of this region deserve the chance. [speaking in foreign language] cheryl: our apologies, this is egyptian television that we are showing you right now. this is happening in cairo right now. they are doing the translations for the egyptian people. i do not speak of egyptian. it is kind of tough for our viewers to tell what is being

said. somewhat doubtful if there is any real truth that can take place. this is what we are confirming right now. what do you make of this, jeremiah? >> when they begin attacks again. they will send the secretary of state back into the region. strategically, we are faltering. that is where we are faltering. we cannot send a policeman like secretary clinton and every time violence begins. we need a long-term strategic plan for the region and we do not have one. i guarantee you, the next one or two years will be extremely violent and volatile. they are fighting for their very lives. this administration is doing

nothing concretely to help them and safeguard them. imagine israel is the size of new jersey, connecticut, new hampshire. place any of those in the united states. imagine the states surrounding it is your enemy. there is no strategic standing by the side of israel. they are taking advantage of the recent election here in the united states the cease fire will be taking a fact. i wanted to ask you, as well, one of the things about the key role the egyptians are playing right now. when it comes to economic aid, whether it is the palestinians

depending on u.s. aid, the egyptians as well, they are looking for $4.8 million from the imf. the president could come in and say is that egyptians continue to support. three, there is a lot more now then there was before, especially the muslim brotherhood running things and that is egyptian television, do not bother that. it seems to me that the president does have a good pair to strike here and say we will not give you aid if you continue to aid terrorist. >> there is a proper way to go about this. you do not want to if there's a foreign leader. i am not asking president obama to go out onto the lawn of the white house and make the new pronouncement. our ambassadors in our military leaders who are in the region, even folks out of that nfc, they

need to quietly meet with these folks behind the door and say, you know what, we understand you are going through some great historical change, we welcome that and we understand you are speaking to the masses on the street when you condemned israel and faults with it. the fact of the matter is, israel is our ally and if you do not step forward and stop hamas, you will suffer dire consequences and it just will not be with the first strings. cheryl: we are showing our viewers right now the oil contracts. in all the escalation of intentions and the threat with israel, the european contract, as well as the wti contract, you have american investors that are very nervous. it sounds to me that you are a lot concerned about iran's

capabilities than others. >> they are not years away by any means. they are quickly approaching enrichment. the beauty of oil deals and other trade going on in the region is if you have the proper brokerage and the state department, again, state department would be at the back end of it, not much comes out of the state department speaking lately on camera here, especially in this part of the world. if you major trade was benefited by all parties, including palestinians, okay, you could make deals happen. you could have peace with the palestinians. we are years away from that because of the posture of the white house. we have to take care of iran first. as syria goes, so goes iran. we missed one hell back of an opportunity in 2009 to bring

that then you cut a deal with the palestinians. cheryl: thank you very much for standing by in helping us cover the breaking news. i do want to let our viewers know we are just seeing a release from the white house that president obama did call benjamin netanyahu to express his appreciation for the efforts to work with the new egyptian government to achieve a sustainable cease-fire. president obama did get on the phone with benjamin netanyahu of israel today. let's go and see how oil was affected by the breaking news. sandra smith, what are you looking at? sandra: there was an immediate reaction in the trading pits. we had been higher on the session, but, of course, oil plunged on this news.

we saw oil hit the low of the session. $86.37 a barrel. that fella did not last on that news. now, it is right around 86.60. it is not being sustained. traders say it will take a lot more than that for that risk premium to be pulled out of the oil and gasoline market. big selloff on the news, but did not hold. now, we are bordering on the unchanged mark. cheryl: we should also keep in mind we are going into a holiday. sandra smith, thank you very much. we appreciate it. once again, if you are just joining us now, the cease-fire has been struck between israel and hamas. this is over the gaza strip which hamas controls. we are looking at market

reaction. we will be right back on "markets now." ♪ with dedicated support teams at over 500 branches nationwide. so when you call or visit, you can ask for a name you know. because personal service starts with a real person. [ rodger ] at scottrade, seven dollar trades are just the start. our support teams areearby, ready to help. it's no wonder so many investors are saying... [ all ] i'm with scottrade. announcer: the smallest moments can have the biggest impact on a child's life. take time to be a dad today. learn more at fatherhood.gov.

>> i am tracy byrnes with your fox business brief. this after the country's international lender failed to came to agreement on how to get the debt down. the greek prime minister says the last of the deal over technical reasons does not justify holding up the aid needed to advert bankruptcy. morgan chase again at record lows. a tram that is boasting home sales and aiding the housing recovery. according to freddie mac, the average rate on a 30 year mortgage rate is now 3.31%. the national transportation safety board says it is looking to kick the blackberry to the curb. they will favor the iphone. the federal agency claims the phone has been failing at an unacceptable rate.

that is the latest from the fox business network. giving you the power to prosper. ♪

cheryl: i want to update you on the breaking news here at fox business. moments ago announcing a cease-fire. a deal has been brokered between the israelis and train -- hamas. we have seen bus attacks in tel aviv, also rockets being aimed at jerusalem. again, a cease-fire has been brokered now. the egyptians have brokered a deal between israel and hamas. the troops set to take effect 2:00 p.m. eastern time. one hour and 15 minutes from now on the east coast. we are just getting a statement from the israeli prime minister's office. this is coming from benjamin netanyahu's office. it is regarding the phone call.

according to the prime minister's office, a short while ago they spoke and benjamin then yahoo! agreed to his recommendation from the president to get a chance to the egyptian offer of the cease-fire. the prime minister expressing his deepest gratitude. that press conference just a few moments ago. there is a secretary hillary clinton. i want to bring in now k.t. mcfarland. what you make of all of this works back my last guest was a little bit doubtful. >> it is all about iran and egypt. that is to destroy the missiles, the 10,000 missiles, including the 100 some long-range missiles

that are in the gaza strip. they have probably gotten all of them and taking them out. why is that important, obviously, because they were being fired at israel. six months from now, we want the option, if we feel we have to do a preemptive strike against iran , we want to make sure they cannot retaliate. think of this as a preemptive strike against a preemptive strike. that is israel's part of it. and that is iran. can this hold? this is where egypt comes in. once those missiles are destroyed, what they get replenished. the only way to do that is through egypt, underneath tunnels that go through the gaza strip and into gaza. egypt is key. will they enforce this, will they make sure there is no resupply of vessels because if there is a resupply, this is

just, you know, we will be at this again three months from now. cheryl: i think that is where the doubting comes in from several egyptians. now that you have the president of egypt who is muslim brotherhood, they are supporting hamas. they have a populace situation where there is more and more support for hamas through the moslem brotherhood. they are looking for money from us and from the imf. i guess, i am asking, can we trust the egyptians in this case? >> you put your finger on exactly the right thing. egypt now is a different egypt. the president of egypt has to work a very scary tightrope. he is too flimsy to hamas and gaza and the aim of the muslim brotherhood, if he does not have

massive infusions of billions of dollars from the u.s., from the imf, the egyptians are hungry and they will go back to the street and ask what they need them for. he is too friendly in the other direction. in other words, he is not tough enough on israel. his own people will rise up and say, what do we need him for. morici is in a very scary situation. what makes this nicer for him, is the u.s. checkbook. cheryl: they are looking for money, obviously. let me ask you another question with regard to israel itself. four decades, israel has been on the defense, obviously. this year more than ever, benjamin netanyahu is setting the stage. in particular, i think the hamas sidedness and now egypt, if you

are benjamin netanyahu right now, what are you saying to yourself, how do you protect israel? >> i think what you say is two things, do not loose sight of the main event in the main event is iran and nuclear weapons. the second thing you worry about is if you look at a map, israel is now surrounded. on the north, it is syria, lebanon and unstable jordan. it is a questionable relationship with egypt. all around, the neighborhood has just gotten a whole lot worse for israel. what they want to avoid is being followed down. cheryl: k.t. mcfarland, fox news contributor and a well-respected analysts when it comes to the middle east. thank you for calling in.

i appreciate it. >> thank you, cheryl. cheryl: the markets are actually somewhat higher right now. nicole petallides standing by on the floor of the new york stock exchange. did we see any movement? nicole: we picked up a little momentum. we have the vix to the downside. the stock market, you look at the dow jones industrials, i want to pull off some of the dow leaders today. the day before thanksgiving holiday and do not forget friday is a shortened trading day so some folks try to get their action ahead of the weekend. we see names like hewlett-packard leading the way. cisco systems, bank of talk abo, thinking of jcpenney. a name that has struggled.

mr. johnson has worked so hard in trying to turn that company around. in the meantime, jcpenney shareholders know it has been under pressure. for the month of november, it is down 28%. still working on that turnaround plan. you have an up arrow today. cheryl: thank you. we will see you at the top of the hour. we will continue to cover the markets. we are moving into the thanksgiving holiday. a lot of breaking news during this hour of fox business. keep it right here. we will be back with a lot more. ♪ e of kids, [ children laughing ] move to the country, and live a long, happy life together where they almost never fight about money. [ dog barks ] because right after they get married, they'll find some retirement people who are paid on salary, not commissn. they'll g straightforward guidance

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cheryl: right now thanksgiving travel is in full force. jeff flock is standing by at a very busy o'hare airport in chicago. jeff: more busy than normal. thanksgiving travel and big fault out here. it looks funny and that is a good thing. though filed it is beginning to burn off. we have big delays on this thanksgiving holiday. i want to get to the board to show you. we just got this from the folks at o'hare. 162 folks at o'hare flights have been canceled. thirty-one at midway. 500 delays. come on if you, larry, real quick. long way to walk. sorry. there you go. excuse me. on arrival board, if you take a bow, every flight has either been canceled or delayed coming

into o'hare. we will watch it all day, cheryl. cheryl: busy day at o'hare. jeff flock, thank you very much. nothing says thanksgiving like football and the macy's thanksgiving day play. they are getting the balloons and floats ready. on friday, i will be at the world largest department store macy's, harold square. terry lundgren will be speaking live with fox business. also, you want to be here next week. noon eastern time for our survival kit. what you need to do to survive for the fiscal cliff. dividends, capital gains, everything could be affected. a fiscal cliff survival kit. all next week at noon eastern time.

there is a lot more coming up on markets now. melissa francis will take you through the next hour. ♪

>> i am a list of frances. breaking news, cease-fire in the middle east, sakura state clinton negotiating a truce between israel and hamas. energy market reacted immediately. we will take you live israel and the pets of the cme. all of our bases covered. new signs of fiscal cliff has people worried after months of gains, consumer sentiment waning last month. this was a surprise. they worried consumers not what retailers want to hear this holiday shopping season. paypal joins us on the trend that it is seeing. one of the biggest travel base